Private Student Loan Consolidation – 4 Tips You Need To Know
Private Student Loan Consolidation
It’s no surprise that the cost of continuing your education beyond high school is quite expensive. This is especially true if you’re enrolled in a 2-year or 4-year degree program at a private (or even public these days) university. Private universities have even higher tuition rates leaving graduates with thousands upon thousands of dollars in debt and in search of a job.
If you are looking for private student loan consolidation here are 4 simple tips to help you along the way:
1. Determine if private student loan consolidation is right for you. Consolidation tends to be much easier to manage because you only have to make one monthly payment instead of paying several different lenders. You’ll want to take a look at the student loans that you currently have and check their interest rates to see how much they’re costing you.
2. Think about how much you can afford to pay each month. Generally, when you consolidate your loans into one loan, your payments will be much lower than if you were making several payments each month. To save money on the cost of your student loans, consider paying off as much as you can afford to each month, without sacrificing your basic living costs.
3. Research private student loan consolidation lenders. The internet makes it very easy to research different loan consolidation companies and programs but it can be a tedious process. Just keep in mind that you are looking for the lowest possible interest rate. If you want more assistance with this process you can contact the financial aid office at the educational institution that you attend or have attended.
4. Think about how soon you’d like to pay off your loan. Depending on your outstanding loan balance, you can choose to pay off your loan in as little as 5 years to as many as 30 years. The general guideline seems to be 10 years, but it all depends on your outstanding balance.
When you’re looking into private student loan consolidation, always be sure you know what you’re getting into. Read all of the terms and conditions associated with each repayment program that you are interested in and be sure to read all of the fine print. Also, before you agree to or sign any paperwork, be sure that the proposed monthly payment is something you can afford.